On April 21, the global cryptocurrency market experienced a violent shock. The price of Bitcoin once exceeded $87,000, setting a new high in nearly three months; Ethereum returned to above $1,600, Solana (SOL) also rose to above $140, and the altcoin sector generally rose slightly. However, market risk sentiment has not fully recovered. According to XBIT (dex Exchange) statistics, the 24-hour liquidation amount of open contracts on the entire network reached $220 million that day, of which short orders accounted for more than 60%, indicating a fierce game between bulls and bears.

Twitter: @XBITDEX

Macro pressure and policy game become the main reasons for the market

The recent Fed policy and the Trump administration’s tariff measures have complicated the global macroeconomic environment. U.S. stocks and crypto markets are under pressure at the same time: Fed Chairman Powell reiterated this week that “there will be no intervention in market fluctuations”, and his hawkish stance has exacerbated investors’ concerns about monetary policy tightening. At the same time, the Trump administration released a signal of tariff adjustment, saying that “the increase in tariffs between China and the United States may be coming to an end”, but policy uncertainty still makes market sentiment cautious. Affected by this, the spot gold price broke through the historical high of US$3,364 per ounce, and the safe-haven demand was in sharp contrast to the volatility of the crypto market.

Institutional views diverge: Bull market restart or long-term consolidation? Faced with market fluctuations, institutions have significant differences in the future market trend.

Optimists: Bitcoin can expect a new high this year! XBIT (dex Exchange) order flow analysts predict that Bitcoin will break through its historical high this year and remind investors to be wary of the risk of profit-taking when sentiment is overheated. He emphasized that the current market is still in a cyclical upswing。

Twitter: @XBITDEX

Cautious: Multiple catalysts are needed to support continued growth! XBIT (dex Exchange) Growth Director analyzed that if Bitcoin wants to continue its rise, it needs to rely on catalysts such as the Fed’s interest rate cuts, stablecoin liquidity growth or government stimulus policies. The report pointed out that the significant upward movement of altcoins requires actual applications to drive demand, but the current liquidity influx is unlikely.

Technical warning: May enter a long-term consolidation period! XBIT (dex Exchange) Research Director warned that the Bitcoin Stochastic Oscillator indicator shows that the market is closer to the “late cycle top” rather than the beginning of a bull market. He expects Bitcoin to fall into a long-term consolidation, which contrasts with the optimistic expectations of some analysts for “mid-year new highs.”

XBIT data shows that “whale” wallets holding 10,000 to 10,000 bitcoins have continued to increase their holdings recently, and have bought more than 53,600 bitcoins since March 22, indicating that long-term holders are still buying on dips. However, XBIT (dex Exchange) Research Director predicts that the market may bottom out in the second quarter of 2025 and advises investors to maintain a defensive strategy. Choose XBIT (dex Exchange) The network ensures that transaction records are open and transparent, and it is difficult for a single entity to intervene or freeze. Anyone can trade freely on the chain, without being affected by government or institutional geographical blockades. Only a smartphone and the Internet are needed to trade, covering people who are not reached by the traditional financial system. Some DEXs support multi-chain asset transactions (such as Polkadot and Cosmos ecology), breaking down barriers between chains.

Twitter:  @XBITDEX

Despite the increased volatility in the short term, institutions generally believe that the crypto market is at a “crossroads”. The Fed’s policy path, geopolitical risks, and potential positive factors such as Bitcoin ETFs will become key variables in future trends. Investors need to be wary of high volatility and pay attention to macro signals and technical turning points.

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.